DALLAS — Pallet Productions Inc. plans to set up a plastic pallet joint venture in Russia to tap a market now ``in an embryonic stage,'' an official said.
The Dallas firm agreed to a 50-50 venture with Alex Greem & Co. of Moscow, a venture capital firm that formerly made wooden pallets and that has an existing distribution infrastructure.
The two parties will invest $8 million to $10 million in the project and expect to begin production in Moscow by midyear, according to Ralph Curton, chairman and chief executive officer of Cabec Energy Corp., Pallet Productions' parent company, also in Dallas.
Curton said the venture will occupy an existing facility formerly used for defense industries. The facility has metalworking machinery that the venture will use to make its own injection molding machines and tooling based on Pallet Productions' molding technology. Cabec estimates the plant will make 500,000 block pallets and 30,000 nestable pallets a month.
Alex Greem will manage and coordinate the venture and provide financing. Officials expect to finalize the venture in March.Michael John, a German inventor, started Pallet Productions in 1996. It plans to set up a second pallet molding plant in Bay City, Texas, by 1999.